THE country’s manufacturing output posted another three-digit growth, the fourth consecutive level of increase this year, according to the Philippine Statistics Authority (PSA).
Based on the results of the Monthly Integrated Survey of Selected Industries (MISSI), the Volume of Production Index (VoPI) surged 537.9 percent in July 2021.
This is the highest growth recorded for VoPI this year. The three-digit growth streak started in April with a growth of 156.2 percent, followed by 267.5 percent in May and 459 percent in June 2021.
“Expansion in VoPI for the manufacturing sector in July 2021 was observed in 14 out of 22 industry divisions. The fastest-growth rate was reported in the manufacture of coke and refined petroleum products at 3,525.6 percent,” PSA said.
A far second was the manufacture of fabricated metal products, except machinery and equipment which posted growth of 119.8 percent; followed by the manufacture of wood, bamboo, cane, rattan articles and related products which grew 57.4 percent.
However, PSA said the remaining eight industry divisions recorded declines, with the manufacture of tobacco products registering the fastest annual decline of -55.8 percent.
Capacity utilization
Meanwhile, the country’s average capacity utilization dipped to 66.7 percent from 67.7 percent in the previous month, according to PSA data.
The sector that posted the lowest average capacity utilization rate was the manufacture of leather and related products, including footwear at 31.8 percent.
This is the sector’s lowest since March 2021 when it posted the same average capacity utilization rate. The rate is also slower than the 36.4 percent it posted in July 2020.
The sector that saw the largest decline in average capacity utilization rate between June and July 2021 was the manufacture of chemical and chemical products which saw a 5.8-percentage-point drop in average capacity to 57.2 in July from 63 percent in June 2021.
This was followed by the manufacture of rubber and plastic products which posted an average capacity utilization rate of 69.6 percent in July 2021, a 5.2-percentage point decline from the 74.8-percent it posted in June 2021.
However, the manufacture of wood, bamboo, cane, rattan articles, and related products posted the highest increase in average capacity utilization rate in July 2021 of 8.8 percentage points to 54.4 percent from 45.7 percent in June 2021.
PSA said 19 of the 22 industry divisions had more than 50-percent average capacity utilization rate. This was led by the manufacture of other non-metallic mineral products at 81.1 percent; manufacture of tobacco products, 78.3 percent; and manufacture of furniture, 74.1 percent.
The MISSI is now termed the Production Index and Net Sales Index. It is a report that monitors the production, net sales, inventories, and capacity utilization of selected manufacturing establishments to provide flash indicators on the performance of the manufacturing sector.